Tesla rises over 3% following Musk announcing new FSD model in training, potential public release by end of next month

Tesla rises over 3% following Musk announcing new FSD model in training, potential public release by end of next month

Tesla's stock surged by over 3% on Wednesday, July 2, 2025, following Elon Musk's announcement that the company is training a new Full Self-Driving (FSD) model. According to Musk, the new model is expected to be ready for public release by the end of next month, provided that testing goes well [1].

The new FSD model is being trained with approximately 10 times the parameters of the current model and includes significant improvements to video compression loss. This development comes amid ongoing scrutiny of Tesla's Autopilot system following a fatal crash in Florida in 2019, for which Tesla was ordered to pay over $300 million [2].

Musk's announcement follows recent legal setbacks for Tesla. The company was found partially liable for a 2019 crash involving Autopilot, and shareholders have filed a lawsuit alleging that Tesla overstated the effectiveness of its autonomous driving technology. Despite these challenges, Musk's post on his social media platform, X, has sparked optimism among investors, leading to a rise in Tesla's stock price.

The new FSD model, if successful, could enhance Tesla's reputation and address concerns surrounding the current Autopilot system. However, investors should remain cautious and monitor the progress of testing and any regulatory scrutiny that may arise.

References:
[1] https://www.marketscreener.com/news/musk-says-tesla-is-training-a-new-fsd-model-probably-ready-for-public-release-end-of-next-month-if-ce7c5ed9da8ef62c
[2] https://qz.com/elon-musk-says-tesla-training-new-full-self-driving-model-amid-autopilot-woes